Re Contract

RNS Number:0129H
Kvaerner PLC
17 July 2001


Kvaerner secures major onshore contract in Norway with 
US$69 million clean fuels project for Statoil 

LONDON, 17 JULY 2001: Kvaerner, the Anglo-Norwegian engineering and
construction Group, today announced that it has secured a US$69 million
engineering, procurement and construction contract, for the upgrade of the
Statoil Refinery at Mongstad in Norway, to comply with the European Fuel
Specifications for 2005 (Auto Oil II Program).

Keith Henry, CEO, Kvaerner E&C said: "This is a significant project for
Kvaerner E&C in Norway.  Our extensive international experience in the clean
fuels business in recent years, coupled with our strong local presence and
construction capability, ensures we are well equipped to execute this
project."

The project comprises the installation of a grass roots gasoline
hydro-desulphurisation unit, in addition to modifications to the existing
refinery utilising technology from Exxon Mobil, Shell Global Solutions and
Merichem.  The project will be executed from Kvaerner's operations at
Zoetermeer, The Netherlands, in co-operation with Kvaerner's Norwegian
offices.  Project completion is scheduled for the end of 2002.

The refinery is operated by Mongstad Refining DA (79% owned by Statoil ASA and
21% Norske Shell Raffinering a.s.).



For further information: 
Paul Emberley, Vice President Group Communications, Kvaerner PLC: +44 (0)20
7339 1035 or [e-mail] or Vanessa Mourant, Kvaerner E&C,
London: [phone]
[e-mail] or Samantha Voorvelt, Kvaerner E&C, Zoetermeer:
[phone]
[e-mail]  or click on the website at
http://www.kvaerner.com 

NOTES TO EDITORS

1. Kvaerner is a world-class Anglo-Norwegian engineering and construction
Group.  It meets the needs of its customers by adding value to their business
- through the provision of innovative, cost-effective solutions to
engineering, contracting and construction challenges.  The Group's activities
are currently organised in two core business areas: E&C (Engineering and
Construction), and Oil & Gas.  Kvaerner is a Norwegian registered business,
but has a London, UK-based international headquarters.  The Group has annual
revenues in excess of US$6 billion, with some 35,000 permanent staff located
in almost 35 countries throughout Europe, Asia and the Americas.

2. The E&C business area of Kvaerner specialises in the provision of process
technology, design, engineering, project management, procurement and
construction to a number of industrial sectors on a worldwide basis: chemicals
and polymers, pharmaceuticals, oil and gas, water, energy, nuclear, minerals,
mining, steel and transportation.  Kvaerner's breadth of capability is unique
among its competitors.  It offers the complete range of services that are
necessary to realise global projects from conception to start-up.  These
services include a portfolio of advanced process technologies, research and
development, test work, a full range of engineering studies (including
bankable feasibility and environmental studies), total project management,
engineering and design, procurement, construction and maintenance services.   
Kvaerner E&C employs more than 9,000 people operating from over 30 offices
worldwide.  This global reach enables Kvaerner to tailor its services and
resources to suit individual client needs and market conditions to provide
cost-effective technical solutions.